senate Bill S2677

2011-2012 Legislative Session

Authorizes a public retirement system, mutual fund, or other institutional investor to bring actions for damages sustained due to violations of the Martin Act

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Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 12, 2012 committee discharged and committed to rules
Mar 09, 2012 notice of committee consideration - requested
Jan 04, 2012 referred to corporations, authorities and commissions
Jan 28, 2011 referred to corporations, authorities and commissions

Co-Sponsors

S2677 - Details

See Assembly Version of this Bill:
A3805
Current Committee:
Law Section:
Business Corporation Law
Laws Affected:
Add §631, BC L; add §179-a, R & SS L
Versions Introduced in 2009-2010 Legislative Session:
S5768, A8646

S2677 - Summary

Authorizes a public retirement system, as defined in section 501 of the retirement and social security law, mutual fund, or other institutional investor to bring actions for damages sustained due to the commission of certain prohibited and criminal acts in violation of the Martin Act (Fraudulent Practice in Respect to Stocks, Bonds and other Securities).

S2677 - Sponsor Memo

S2677 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2677

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  the  business corporation law and the retirement and
  social security law, in relation to  authorizing  certain  actions  by
  institutional investors

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The business corporation law is amended  by  adding  a  new
section 631 to read as follows:
S 631. ACTION BY CERTAIN MUTUAL FUNDS AND OTHER INSTITUTIONAL INVESTORS.
  (A) ANY MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR INCORPORATED UNDER
THE  LAWS  OF THIS STATE OR WHICH MAINTAINS ITS PRINCIPAL PLACE OF BUSI-
NESS IN THIS STATE, THAT IS DAMAGED IN CONNECTION WITH THE  PURCHASE  OR
SALE  OF  A SECURITY AS A RESULT OF THE COMMISSION OF ANY ACT PROHIBITED
BY SECTION THREE HUNDRED FIFTY-TWO-C OF THE GENERAL  BUSINESS  LAW,  MAY
BRING  AN  ACTION  FOR  DAMAGES  AGAINST ANY PERSON, PARTNERSHIP, CORPO-
RATION, COMPANY, LIMITED LIABILITY COMPANY, TRUST, OR  ASSOCIATION  THAT
COMMITTED OR PARTICIPATED IN THE COMMISSION OF SUCH PROHIBITED ACT.
  (B) NO MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR THAT HAD FEWER THAN
FIVE  HUNDRED  BENEFICIARIES  AT THE TIME OF THE PURCHASE OR SALE OF THE
SECURITY MAY BRING AN ACTION UNDER THIS SECTION.
  (C) WITH RESPECT TO ALLEGATIONS THAT A REPRESENTATION OR STATEMENT WAS
FALSE, THE PLAINTIFF WITH RESPECT TO ALLEGATIONS REQUIRED TO  PLEAD  AND
PROVE  THAT THE PERSON WHO MADE SUCH STATEMENT: (I) KNEW THE TRUTH; (II)
WITH REASONABLE EFFORT COULD HAVE KNOWN THE TRUTH; (III) MADE NO REASON-
ABLE EFFORT TO ASCERTAIN THE TRUTH;  OR  (IV)  DID  NOT  HAVE  KNOWLEDGE
CONCERNING THE REPRESENTATION OR STATEMENT MADE. WITH RESPECT TO ALLEGA-
TIONS  OF ANY OTHER NATURE, THE PLAINTIFF IS REQUIRED TO PLEAD AND PROVE
THAT THE PERSON ACTED WITH NEGLIGENCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06099-01-1

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